Tilray’s Strategic Pivot: European Expansion Gains Momentum

Tilray Brands is intensifying its focus on the global medical cannabis sector. Following record-breaking quarterly revenue, the company is accelerating its European growth through a strategic reorganization centered on Italy.

On January 8, Tilray reported results for its second fiscal quarter of 2026, ended November 30, 2025. The company announced an all-time high for quarterly sales.

Key financial highlights include:

• Net Revenue: $217.5 million, marking a 3% year-over-year increase.
• International Cannabis Revenue: Grew by 36% compared to the prior year.
• Canadian Recreational Cannabis Revenue: Rose 6% year-over-year.
• Operating Loss: $22.3 million, a significant improvement from a loss of $42.2 million in the same period last year.
• Cash, Cash Equivalents, and Marketable Securities: $291.6 million.
• Net Cash Position: $27.4 million.

The company also reaffirmed its full-year guidance for adjusted EBITDA, projecting a range of $62 to $72 million.

Italy Emerges as a Central Hub

A cornerstone of Tilray's European strategy is the formal launch of Tilray Medical Italia on January 22. This move rebrands the previously acquired FL Group, consolidating the company's medical cannabis activities across Europe under a single, unified brand.

Operating in partnership with Molteni Farmaceutici, a historic pharmaceutical firm based in Florence, Tilray Medical Italia distributes EU-GMP-certified medical cannabis products approved by the Italian Ministry of Health. Distribution is channeled through hospitals and pharmacies.

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Portfolio for the Italian Market

The product lineup in Italy is designed to meet varied patient needs and includes:

• Dried cannabis flowers with different THC concentrations (25%, 18%, and a balanced variant containing 9% THC and 9% CBD).
• Multiple medical cannabis oil formulations, available in 25 ml and 100 ml bottle sizes.

Beverage Segment Faces Headwinds

Alongside its medical cannabis operations, Tilray continues to develop its beverage division. On January 22, its craft beer subsidiary, SweetWater Brewing Company, launched "Big Trip Double IPA," expanding its Daytrip IPA product line. This new beer, with 9% alcohol by volume, targets the growing market for stronger craft beers in the southeastern United States.

Operationally, however, the beverage segment underperformed in Q2. Division revenue declined to $50.1 million, down from $63.1 million in the prior-year quarter.

Preparing the Groundwork in the United States

In December 2025, Tilray established Tilray Medical USA, a dedicated unit for the U.S. market. This strategic move was prompted by an executive order from President Donald Trump that rescheduled cannabis from Schedule I to Schedule III, altering its federal regulatory classification.

The company aims to leverage its extensive experience from international medical cannabis markets to scale rapidly should the U.S. market open further. This initiative represents a proactive effort to build infrastructure ahead of any subsequent regulatory developments.

Looking Ahead

The company's next quarterly report is anticipated around April 8. This upcoming release will provide clearer insight into how the growth in international medical cannabis, the challenges in the beverage segment, and the strategic repositioning in Italy and the USA are collectively impacting the financial results.